NEWSLETTER
Cathie Wood, Chief of Investment Management of ARK, believes in technological actions that will have a “disruptive” impact on the future. Often cuts your bets to block the profits.
Sometimes its strategy works: the ETF of innovation ark flake flake (Sheet) has returned 10.75% this year to January 31, while the Standard & Poor's 500 index and the Nasdaq compound index have earned approximately 3% and 2%, respectively.
Wood has just sold two of his favorite technological actions before his profits.
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The opinions about wood are divided. Supporters see her as a technological visionary, while critics say she is only an average fund manager.
Wood gave an extraordinary performance of 153% in 2020. However, his long -term performance has asked questions about the sustainability of his high -risk strategy and high reward.
Related: Cathie Wood Buy $ 16.6 million of vacilating technological actions
As of January 31, 2025, the ETF of Innovation ARK, with $ 6.3 billion under administration, has delivered an annualized return of three years of 5.89% negative and a yield of five years of only 4.46%.
In comparison, the Nasdaq compound has an annualized return of three years of 12.18% and a five -year yield of 17.41%.
Cathie Wood's investment strategy explained
Cathie Wood's investment strategy is simple: its ETF Ark generally buy shares in emerging high –tech companies in fields such as artificial intelligence, blockchain, biomedical and robotic technology.
Wood says that these companies have the potential to remodel industries, but their volatility leads to large fluctuations in Ark's funds.
RELATED: The Net Heritage of Cathie Wood: The wealth and income of the CEO of the CEO of Ark Invest
Amy Arnott, Morningstar Research Services portfolio strategist, estimated that Ark Innovation ETF cleared $ 7.1 billion of shareholders of its launch in 2014 to 2023.
That put the third ETF in the list of the greatest mutual funds that destroy wealth and ETF for the decade that ends in 2023. The analyst has not updated the list by 2024.
But things can be different as Donald Trump returns.
Todd Sohn, ETF strategist and Strategas Securities technician, said that the next generation Internet ETF (Arkw) It has increased 30% since Trump's 2024 re -election.
“We still firmly believe that Arkw is such a good proxy for Trump 2.0 as you could find, with great exposure to bitcoin, derivatives crypto, Tesla and Defense,” Cohn told Marketwatch.
Wood recently shared optimism about a change to the most loose regulation under the presidency of Trump.
“What the new administration is doing is to change fear with optimism,” Wood said in Bloomberg on January 22. It is “highly underestimated how important deregulation will be to unleash animal spirits. We are quite excited about this. Our strategies are starting to explode.”
Not all investors echo Wood's trust. During the past year, Ark Innovation ETF has seen a net exit of almost $ 3 billion, with $ 330 million that leaves the Fund in the last month, according to the ETF VettaFI investigation firm.
Cathie Wood sold $ 8.6 million of Roblox and $ 10.4 million from Palantir before the profits
From January 28 to January 31, Wood's Ark Innovation ETF sold 121,696 Roblox actions (RBLX) For four consecutive sessions.
That piece of shares was valued at approximately $ 8.6 million.
Related: the last Palantir movement of Veteran stock trader returns to the heads
Roblox won a slight 26.6% in 2024, just below the growth of 30% of the Nasdaq Composite compound. However, the action experienced a significant increase in early 2025, reaching the highest since January 2022.
Roblox is a California -based game company that operates an online platform where users can create, share and play games developed by other users.
The company reported strong results of the third quarter in October 2024, with an increase in income year after year 29% and a 34% increase in reserves.
Roblox will publish his fourth quarter of finance 2024 on February 6. Several analysts have increased the price objectives of their shares before profits.
For example, Roth MKM raised its target price in Roblox to $ 70 from $ 54 with a neutral rating. The firm believes that Roblox will report results from Q4 better than expected and adds that the stock has a price of perfection, “according to Thefly.com.
In addition to selling Roblox, Wood continued to download actions in Palantir Technologies (Fungus) .
On January 30, the ARK Innovation ETF sold 127,969 Palantir shares valued at approximately $ 10.4 million.
The Palantir stock quadrupled (more than 340%) in 2024 and was one of the largest winners of Nasdaq. The rally was driven by a strong demand for data analysis with ai of the company.
Related: Peter Thiel's Net Network: How the controversial founder of Palantir earned his money
Governments widely use Palantir for intelligence and defense, while companies use it for data -based operations. Their products help them detect patterns and discover key ideas in large data sets.
Palantir will publish its earnings from the fourth quarter on February 3. The latest profits from the third quarter of the company reported well above expectations.
“We absolutely uncommon this quarter, driven by a relentless demand that will not be reduced,” wrote the Palantir CEO, Alex Karp, at the launch of profits from the third quarter of the company.
Wood has been throwing his palantir actions in recent months. On January 13, he sold 140,518 shares for an approximate value of $ 9.1 million. Between January 3 and January 7, he downloaded 221,950 shares valued at $ 16.9 million. He also sold Palantir shares five times in December and eight times in November.
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Despite the sale, the two technological actions remain a significant weight in Wood's portfolio.
As of January 31, Roblox occupies the number 4 in the 10 main holdings of the EFT of innovation ARK, which represents 6.7% with a total value of $ 464.8 million. While Palantir occupies the sixth place, representing 5.1% with a total market value of $ 356.3 million.
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